Toby, Toby!
Did you oversleep the major industry event along with the PlanetOut’s IPO and the Lemontonic crash?
The industry is in a pretty messy situation. The click prices are skyrocketing thank to the competition, the audience is growing fast but overall everybody is doing bad because of the traffic dilution. Big players' CEO being fired like clock works.
Oh yeh, about Lavalife. Here is the news link for you.
http://www.cbc.ca/stories/2004/03/04/business/lavalife040304
CAD$152 = US$102 by that time.
Frankly, I suspect that it wasn't a clean deal. Lots of unsaid words were hidden there. I guess Lava founders' were very unhappy with there investors and therefore, bought them out through this deal.
Otherwise, it's hard to explain why anybody in a right mind would pay $130 per member. As you may know, Lava claimed having 700,000+ paying members by the deal moment.
MemberWorks (later Vertrue Incorporated), that acquired Lava, said they were interested in the Lava's token-based model. I was laughing into tears to get to know that. They should have ask our friend superman to built the new site for them in 2 weeks and would have saved $100 mil.
Our [url]SweetDuet.com[/url] incorporates both a time subscription and a token-based models providing a great deal of flexibility to users. There are so many unique features on the site that no one else offers. For example, the user preferences sensitive interface, to name one. But I'm still waiting for a $100 mil offer.
Anybody?
I have to admit that you are right about traffic, that is essential to any type of e-commerce. But even if you buy traffic then it’s a technology and marketing and CRM that would convert it into $$$. Miss a piece and you are out of business on a blink of an eye. That’s what happened to Lemontonic with there $35 mln in funding ($25 mln first rounds of private placement and $10 mln later). Now they are manufacturing Hydro Free Furnace Fans. Not really close to dating.
I promise not to be bitchy for the future. But you know it's hard to keep cool when you paid for this experience $$$, blood and sweat and somebody with very limited understanding of the subject interferes.
Alex